Is leasing to own ever a good idea?

**disneysteve** · 07-22-2007, 10:52 AM

If you are referring to a big screen TV from Rent-a-center, the answer is no. If, however, you are talking about a house, then the answer might be yes if the details of the deal make sense.

**Ima saver** · 07-22-2007, 11:25 AM

I would say no also. It never pays to lease anything!! (rent to own might be ok)

**Skooby** · 07-22-2007, 12:58 PM

Originally posted by Ima saver View Post

I would say no also. It never pays to lease anything!! (rent to own might be ok)

That's what I meant...lease/rent to own.

Like a car or a house.

**RetireEarly** · 07-22-2007, 01:18 PM

One thing you need to be careful about with a car is the price for the vehicle at which it's financed. Most leases I've seen/heard about are based on the MSRP of the vehicle, which in many cases is thousands over what you could get it for if you initially bought it outright. I'm sure that price is negotiable, however. An example: I recently bought a truck with an MSRP of $34,500. I got the truck at a few hundred above invoice, less a couple thousand in rebate incentives they had at the time. So the price I paid was $29,400. That's over $5,000 less than if I had leased it for MSRP...

**Ima saver** · 07-22-2007, 01:43 PM

A car lease is almost never a good thing!

**Scanner** · 07-23-2007, 04:45 AM

I'll tell you where it's perfect - my son's trumpet.

As a parent, we don't know if at any time, he's gonna wanna give up the trumpet. So our school has a lease-to-own type of program. We have like $660.00 left on the balance if we want to pay it off. . .or we can continue to lease it for $30/month.

Given he's 9 and has the psychology of a typical 9 year old - we will continue to lease.

**disneysteve** · 07-23-2007, 04:58 AM

Perfect example Scanner. We did the same with my daughter's viola. We actually didn't go through the school as there is a violin dealer nearby who offers a similar program cheaper than the school's program. We ended up buying a viola after 6 months. We got credit toward the purchase and got a brand new instrument, not the same one she had been renting. So yes, this is a time when rent-to-own makes sense, a situation where you aren't really sure if you will be keeping the item.

**Scanner** · 07-23-2007, 05:21 AM

Yeah, it was an education in how expensive musical instruments are. . .I had no idea.

Wish I could deduct it on my business but I'd have a lot of explaining to do to the IRS if I was ever audited

Is leasing to own ever a good idea?